New Zealand suspends aid to Cook Islands over growing ties with China

New Zealand has suspended millions of dollars in aid to the Cook Islands following a series of unexpected deals the small Pacific nation signed with China earlier this year. The agreements—inked in February—span infrastructure, tourism, technology, and, most critically, deep-sea mineral exploration.

Wellington, the Cook Islands' largest financial donor, said it had been blindsided by the breadth and nature of the deals. In response, it has halted fresh funding until the Cook Islands “takes concrete steps to repair the relationship and restore trust,” according to a spokesperson for New Zealand Foreign Minister Winston Peters as cited by Australian media outlet ABC.

The suspension affects NZ$18.2 million (approx. $11 million USD) in aid and comes amid increasing concerns from Western allies—including Australia and the United States—over China’s expanding footprint in the Pacific.

“Funding relies on a high trust bilateral relationship,” Peters' spokesperson said on June 19. “New Zealand hopes that steps will be taken swiftly to address New Zealand’s concerns so that this support can be resumed as soon as possible,” the spokesperson added.

The Cook Islands quickly responded, saying it was “determined to address [the issue] as a matter of urgency” and reaffirmed its appreciation for New Zealand’s longstanding development support.

“Constructive dialogue is ongoing, and the Cook Islands remain committed to engaging closely with New Zealand to understand where their concerns lie and how they can be addressed,” the country’s foreign ministry said in a statement.

The funding freeze coincides with New Zealand Prime Minister Christopher Luxon’s official visit to China, where he is scheduled to meet President Xi Jinping on June 20. Despite the timing, Peters' spokesperson downplayed concerns that the move would strain relations with Beijing, highlighting New Zealand’s “special relationship” with the Cook Islands.

China’s deals with the Cook Islands are part of a broader strategy to build influence among small but geopolitically important Pacific nations. In 2022, Beijing signed a security pact with the Solomon Islands, sparking alarm in Western capitals.

Cook Islands Prime Minister Mark Brown defended the February agreements, saying they were made in the country’s “long-term interests.” He also attempted to reassure Australia and New Zealand, stating that the new deals “do not replace” the Cook Islands’ “longstanding relationships” with its traditional partners.

China, too, emphasized that the agreements were not intended to antagonize anyone in the region.

Still, the announcements triggered backlash at home. In Rarotonga, the largest of the Cook Islands, residents held protests against the China agreements. A no-confidence vote was brought against Brown in parliament, which he ultimately survived.

New Zealand maintains a "free association" relationship with the Cook Islands, which allows it to assist in defence and foreign affairs.

By Nazrin Sadigova